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Oregon Incentives and Laws for Hydrogen Fuel Cells

The list below contains summaries of all Oregon incentives and laws related to Hydrogen Fuel Cells.

State Incentives

Alternative Fuel Vehicle (AFV) and Fueling Infrastructure Tax Credit for Residents

Through the Residential Energy Tax Credit program, qualified residents may receive tax credits for the purchase of new AFVs, the conversion of vehicles to operate on an alternative fuel, and the purchase of alternative fuel infrastructure. The credit for a new AFV is 25% of the incremental cost or $750, whichever is less. AFV conversions and fueling infrastructure may receive 25% of the project cost or $750, whichever is less. Residents are allowed to claim a tax credit for both a vehicle and fueling infrastructure. Leased vehicles may qualify with permission from the vehicle owner. AFV conversions must be certified by the U.S. Environmental Protection Agency. Qualified alternative fuels include electricity, propane, hydrogen, and other fuels the Oregon Department of Energy approves. Gasoline blended with at least 85% ethanol (E85) qualifies as an alternative fuel for the infrastructure credit, but flexible fuel vehicles and low-speed vehicles are not eligible for the vehicle incentives. A company that constructs a dwelling in Oregon and installs fueling infrastructure in the dwelling may claim the credit. The AFV credit is available through December 31, 2011; the fueling infrastructure credit is available through December 31, 2017. (Reference House Bills 3672 and 3606, 2011, and Oregon Revised Statutes 316.116, 317.115, and 469.160-469.180)

Alternative Fuel School Bus Grant and Loan Program

The Oregon Department of Energy (ODOE) must establish the Clean Energy Deployment Program. Under this program, school districts may be eligible for grants and loans to retrofit school bus fleets to operate on compressed natural gas, propane, or other alternative fuels, or to operate with highly efficient engine technologies, such as hybrid electric engines. Funds may also be used to replace school buses with buses that operate on these fuels or technologies. (Reference House Bill 2960, 2011)

Alternative Fuel Loans

The Oregon Department of Energy administers the State Energy Loan Program (SELP) which offers low-interest loans for qualified projects. Eligible alternative fuel projects include fuel production facilities, dedicated feedstock production, fueling infrastructure, and fleet vehicles. Loan recipients must complete a loan application and pay a loan application fee. (Reference House Bill 3672, 2011, and Oregon Revised Statutes 470)

Laws and Regulations

Establishment Low Carbon Transportation Fuel Standards

The Oregon Department of Environmental Quality (DEQ) developed a proposed low carbon fuel standard for all transportation fuels, including a lifecycle greenhouse gas (GHG) emission standard for the production, storage, transportation and combustion of fuels. DEQ will conduct a formal rulemaking process to seek review and comments in 2011. The proposed standards aim to reduce average GHG emissions per unit of fuel energy by 10% below 2012 levels by 2022. For more information, see the DEQ Low Carbon Fuel Standard website. (Reference House Bill 2186, 2009)

Alternative Fuel Vehicle (AFV) Acquisition, Fuel Use, and Emissions Reductions Requirements

All state agencies and transit districts must purchase AFVs and use alternative fuels to operate those vehicles to the maximum extent possible, except when it is not economically or logistically possible to purchase or fuel an AFV. Each state agency must develop and report a greenhouse gas reduction baseline and determine annual reduction targets. Reports to the Oregon Department of Administrative Services must include the volume of ethanol and biodiesel used by state agency fleets, as well as any cost savings attributable to driving more fuel-efficient vehicles and using alternative fuels. (Reference Oregon Revised Statutes 283.327 and 267.030, and Executive Order 06-02, 2006)